Chinese airlines have been among the first to feel the pain as the central government gradually tightens control over trans-provincial passenger flows due to the spread of severe acute respiratory syndrome (SARS).

The airlines have experienced very low seat-occupancy rates since last month, and many of them have cut some of their regular flights to save on costs.

Wang Yongsheng, director of Air China's publicity department, said on Friday that the airline cut at least half of its regular flights during the May Day holidays, a traditional transport peak, because of the huge drop in the number of passengers.

Based in Beijing, Air China runs most of the international flights into and out of China. But, as more and more countries worldwide are restricting the issuing of visas to Chinese citizens, the formerly lucrative international transport business has now turned out to be a money-losing one.

Since March Air China has cut 2,100 flights and affected routes to 63 countries and regions. Wang said Air China's losses were considerable.

Outside Beijing, the Shanghai-based China Eastern Aviation Group has also failed to escape the impact of the industry setback.

Zhang Ming, a spokesman for the airline, said nearly 70 per cent of seats in its planes were empty, while almost half of the traditional "golden'' routes to Europe, Japan and Southeast Asia were cut.

The airline has cut more than 2,900 flights since March. Its major domestic flights to SARS-affected cities, such as Beijing, Guangzhou and Taiyuan, were also severely cut.

The General Administration of Civil Aviation of China (CAAC), the industry regulator, issued an urgent notice banning the suspension of any particular air routes, fearing that domestic airlines would stop certain routes entirely.

CAAC suggested that airlines fly smaller jets or cut route frequencies to reduce operational costs. However, the complete cessation of particular air routes without the administration's permission is absolutely unacceptable. It said violators would be severely punished, including through the cancellation of their certificates to fly such air routes in the future.

On the ground, the Ministry of Railways arranged more cargo trains last month as the fear of SARS discouraged passengers from traveling by rail.

Figures released by the ministry showed that the amount of cargo transported increased by 5 per cent last month compared with April 2002.

Sources said the ministry would arrange more cargo trains this month and in June if passenger demand remains low. This way, the sources said, the industry could still maintain a balanced income.

Road transport has remained normal outside the regions most severely affected by SARS.

The Ministry of Communications has ordered local road administrators to increase their monitoring of vehicles traveling into and out of SARS-affected regions and to make sure the SARS virus is not imported through road transport.

(China Daily May 10, 2003)